Archive for Select Sires

“She’s pregnant!” Those are very welcome words for breeders to hear at pregnancy check time. The ideal is that the pregnancy occurs after one A.I. service in the time period 70 to 100 days in milk, while the cow is producing high volumes of milk, fat and protein. In a perfect world that single A.I. heifer service should occur between 12 and 14 months of age. Getting to that success depends on many factors, not the least of which is the skill of the inseminator.

Do What you Know or Use a Pro?

It takes a wide range of skills to successfully run a dairy operation at a level that is both sustainable and profitable. Professional A.I. technicians recognize that many breeders rise to the challenge of taking on this most vital aspect of their dairy business. They realize that many breeders want complete control of the reproduction program on their farm. Dr. Hernando Lopez, Global Technical Service Director for Genus ABS acknowledges that control is important and sums up the breeder perspective saying, “They believe that they can inseminate successfully themselves’. Dr. Ray Nebel, Senior Reproductive Specialist for Select Sires, outlines further reasons that breeders give for doing their own artificial insemination. “They want the flexibility of when to breed. They prefer having semen available from several different A.I. organizations in their farm tank and being able to change the mating right up to the last minute”. Of course, both Dr. Lopez and Dr.Nebel are aware that cost is one of the strongest motivating factors in choosing who inseminates the cows.

Times have Changed

Thirty years ago there were many more dairy herds and most of them had less than 50 milking cows. Shorter travel distances and labor costs per cow bred by the technician were much lower than today. In that scenario, with only two or three breedings per week, breeders could not become proficient at inseminating. However, with the current average herd size in the US being 187 milking cows, with many miles between herds and with breeders focused on costs, they often choose D.I.Y. artificial insemination for expedience and cost reasons.

Is D.I.Y Really Cheaper?

The monthly bill for technician supplied A.I. needs to subdivided into semen costs and costs for technician services. It’s easy to quote the professional technician’s bill for arm service but expenses must also be pencilled in for the D.I.Y. tech on the farm and for all the costs leading up to the actual insemination.

Remember there is a labor cost for heat detection, including the checking of cows bred 21 days previously. There are additional time related expenses as well. Time to check computer records or activity monitors. Time to check with all staff members for heats others may have seen. Time to call in for service and time to enter breeding information into the herd records. Furthermore for on-farm staff there are costs associated with social security tax, insurance, workers compensation, sick time and other benefits that owners must provide. These time and employment costs are not usually quickly remembered and easily quoted when we sum up the costs of getting cows and heifers in calf. Add in gloves, rods, training and re-training, semen tank purchase and semen tank maintenance and you are getting closer to the true total cost for A.I. Although, at first glance, D.I.Y. seems cost effective and faster, the real question in every dairy manager’s mind should be, “What is the return on the investment?”

Think about it. In a herd of 200 milking cows, it may take a farm employee up to half their time to monitor animals and carry out other aspects of the herd’s reproduction. Some owners take the next step and assign the farm’s repro staff member to the job of doing the breeding. On the surface it sounds like a cost savings but who covers on days-off? What happens when the farm breeding person is needed elsewhere and he/she does not do all the daily reproduction duties including checking for heats? Only seeing 70% of the heats can soon become a major negative factor for the farm’s bottom line. Missed heats result in more days open, lower daily herd average milk production, more non-productive days in the dry pens and an age at first calving of 26 instead of 22-24 months. Add to this the fact that the on-farm inseminator must be trained and monitored and will need to spend time on skills upgrading and, very quickly, the savings from do-it-yourself insemination are rapidly disappearing.

A.I. Results: Are You Getting Professional or Passable?

Of course, if your pregnancy rate is 23+% and you are meeting or exceeding all your established targets, you can stop reading now. However, if your results are not at that level, working with a professional technician could be a discerning business decision for you to consider.

Times have changed from when the only service offered by the technician was insemination. Today organizations providing A.I. tech services wish to provide their customers with a full range of services. Both Lopez and Nebel emphasize that the professional technician becomes part of the on-farm production team, where the goal is to achieve a high pregnancy rate as part of a complete reproduction program.

Dr. Nebel notes that “Herds have gotten bigger, days on the farm have become more demanding, milk per cow has increased and more cows are housed in confinement than they were twenty years ago. These are all challenges when it comes to getting cattle pregnant.” Dr. Lopez also outlines how change is affecting dairy breeding. “Today there is more focus on cow welfare, cow comfort, the successful integration of reproductive technologies like synchronization and heat detection aids and the handling and compliance for large groups of cows. Today successful breeding goes beyond the proper insemination technique. It requires all aspects of dairy management to be correctly working and their needs to be great teamwork.” When breeders work with profession A.I. companies they have access to complete reproduction services including: full cow side services including, walk, chalk, synchronization and insemination’ data entry into herd management software including report generation; management of automated activity and heat detection systems and reproductive consultation.

With all of this potential information and support, one wonders why more breeders not asking for competitive bids from companies that provided genetic and reproductive services to dairy farms.

When it comes to pregnancy rate, whether you are your own professional or hire a professional, you can’t afford less than professional results.

Jack of All Trades or Master of Pregnancy?

Professional technicians employed by A.I. companies breed between 5,000 and 20,000 animals per year. They are continually being monitored for their performance. As new techniques become available they receive training. Their only focus is on getting animals pregnant. Their livelihood depends of delivering top notch service. Dr. Lopez provides this very sound advice: “Most operations can economically benefit from outsourcing breeding or a total reproductive service to a professional technician not only because of the superior consistent results but also due to all the technical support and resources producers have access to through the professional breeding services”.

The Bullvine Bottom Line

Every aspect of dairy farming needs to be penciled out as to cost and return on investment. Every breeder has an area of dairy farming that they like best and do to a professional level. In the end, A.I. breeding is all about fewer breedings, less semen used, more pregnancies, fewer reproductive culls and the best use of time and services. There is too much at stake to be a jack of all insemination trades and master of none.

Breeders need to be totally objective about every step from heat detection to confirmed conception. If you agree that insemination is all about the results, then ask yourself two questions, “How important is an excellent A.I. program?” and “Who performs artificial insemination best?”

Just as we have learned with the Rebels versus the Republic in Star Wars, the Stud wars are far from over. However, instead of clones we have Genomic Sires versus Proven Sires and large A.I. companies versus smaller organizations. The April 2014 genetic evaluations have seen the gap between the haves and have nots decrease. Many of the larger studs that had in the past not focused on Genomic sires greatly increased their genomic offerings and some of the smaller studs greatly increased their niche market offerings. Stud Wars, like Star Wars, thrive on new releases, talent, unexpected changes and rivalries.

TPI

As we found in our initial stud wars (Stud Wars – The Battle for A.I. Supremacy), market share of the pre-genomic era correlates very highly with the big five being ABS, Select Sires, Alta Genetics, Accelerated Genetics and CRI. Since the last proof run, Select Sires has taken over the top spot with two more sires entering the top 50, and CRI has doubled the number of proven sires they had in the top 50 TPI to move into the #2 Spot. Former #1 holder ABS Global has dropped from 14 sires to 11 in the top 50 TPI and now holds the #3 position. A sign of the time is the way Accelerated has dropped market share.

Both our previous gTPI leaders from December 2013 have dropped but still hold the #1, Select Sires, and #2 Semex spots on our list. Making a significant jump on the list is CRI who now holds the #3 spot on the list with 5 sires in the top 50 gTPI. Also seeing an increase is Alta Genetics who now has 4 sires in the top 50 gTPI.

Select Sires continues to lead the way with top TPI offerings both Genomic and Proven. Making a jump into the #2 spot, thanks to an increase in their top TPI proven sires, is CRI. They are followed by Semex who continues to have a strong Genomic TPI offering. .

NM$

It is no surprise that, for the larger AI centers, the focus on the commercial producer market continues to dominate the proven NM$ list. Select Sires moves into the #1 position with the two additional sires in the top list, with CRI moving into the #2 position, almost doubling the number of top 50 NM$ sires they have to offer. Dropping significantly was ABS Global who now finds themselves in the #3 position with 5 fewer sires in the top 50 NM$ list.

A list that was dominated last round by Select Sires who had 32% of the top sires, now finds them tied with CRI and Semex – all with 18% each. Also seeing a significant drop in top gNM$ sires is Alta Genetics who went from 9 last round to just 4 this round.

On the strength of their strong proven and genomic NM$ offering, Select Sires retains the strongest NM$ offering in the US. Thanks to a significant investment in Genomic sires CRI now find themselves with the 2nd strongest NM$ offering.

PTAT

Probably one of the most significant changes of this proof round is Semex moving into the strongest type proven sire offering in the world, with 5 more proven sires moving into the top 50 PTAT. Former #1 Select Sires goes from having 18 sires in the top 50 to 11 and holds the #2 spot.

When it comes to the top 50 Genomic PTAT sires, Semex and Select Sires still top the list, but both have seen significant declines in totals. Many small A.I. studs now find themselves with 1 to 3 sires in the top 50.

On the strength of a greatly improved proven type sire line up, Semex now find themselves on top of the overall PTAT list, followed by Select Sires. However the ever increasing trend continues where more and more smaller AI organizations have a top 50 PTAT proven or genomic sire.

Polled

As we continue to see trends change in the industry, we see the sire line-ups in key markets are also starting to change. Nowhere is it more evident than in the polled trend. With that in mind, we decided to add two key niche markets to our stud wars analysis: (1) polled TPI sires and (2) Red type sires. For both of these lists we are using the top 50 proven or genomic sires.

Not surprising DairyBullsOnline.com the Polled specialists lead the list. Followed by Select Sires and GenerVations.

PTAT R&W SIRES

As we saw in the overall PTAT list, Semex and Select Sires continue to lead the way in type offerings. Also similar to the B&W PTAT lists, we find a number of smaller studs also offering 1-4 of the top red and white sires.

The Bullvine Bottom Line

Holding strong with the best proven sire line-up is Select Sires. Seeing a significant increase and moving into the 2nd strongest proven sire line-up position is CRI. They rise on the strength of their significant increase in top NM$ proven sires. Also seeing an increase and moving into the #3 position is ABS Global. Semex finds themselves with 15 less proven sires on our top lists and drops from the #2 position in December to the #4 position currently.

Tied at the top genomic for genomic sires are Select Sires and Semex. These are the same two studs that ranked #1 and #2 last round. Moving up 2 spots from last round is CRI, powered by a significant investment in top gNM$ sires. Also making a strong showing is the Sexing Technologies / Trans-World Genetics partnership powered by their agreement with the EDG group, who own many of the top genomic females in the world.

Retaining the title of as the strongest overall sire line-up is Select Sires, though it should be noted that Select went from 28% of the top sires in December 2013 to 21% this time. Holding steady with increases in their proven sire line-up and slight decreases in their genomic sire line-up, Semex comes in as the 2nd strongest sire line-up. Moving up to the #3 sire line-up with significant improvements in their proven TPI sire line-up as well as genomic offerings is CRI. ABS Global and Alta Genetics round out the top 5.

Join us in staying tuned to the next order of business in the expanding universe of the Stud Wars.

With each new proof round comes new sires, new rankings and, frankly, new headaches. Wanting to do more than just pump out the same old lists that really do not mean anything to anyone but the semen marketers, or just promote the bulls from the studs who pay us the most money, the Bullvine took a look at the recent December 2013 Genetic Evaluations to find not only the list toppers, but a deeper look to find those unique sires that will address your key breeding challenges.

Overall Performance Improvement

When looking for the sire that will help improve your herd across the board, we looked for sires that have a balance of production and longevity, and most importantly a proven pedigree that ensures that their performance will last. We also wanted great health and fertility traits that will deliver a low maintenance cow (Read more – Fact vs. Fantasy: A realistic approach to sire selection). Here are our top four:

Production Improvement

It might be easy to just take the top milk lists or combine the fat plus protein and say those sires are the best for overall production. We here at the Bullvine would not want to totally forgo type as well as health and fertility, so we are looking for the sires that give you the maximum production gain, without sacrificing everything to get it. In addition to Robust, Ruble and Balisto mentioned above, some other production improvement sires to consider include:

FLEVO GENETICS SNOWMAN
O Man x BW Marshall x Aaron
Proven Sire
+2075 lbs Milk -0.03 %F +67 lbs. F -0.01 %P +61 lbs P 1.9 PL 2.79 SCS +2.43 PTAT +2109 TPI
+3059 kgs. Milk -0.15 F +98 kgs. F -0.03 %P +94 kgs P +104 HL 2.67 SCS +11 Conf. +3112 LPI
When it comes to production improvement it is hard to argue with Snowman. While many people are mixed on Snowman daughters, there is no question that they know how to milk. Snowman is your classic milk bull. He has extreme component yields with average type. However, as history teaches us, extreme sires are exactly the ones that we need to use most in order to accelerate genetic advancement. While not high type, Snowman daughters are surprising many by being solid VG milk cows. He certainly needs to be protected for fat percentage and straight rear legs and most definitely DPR. But if you have the high fat percent heifer or cow that needs an instant production hit, Snowman is the man. Since semen is in limited supply maybe consider a couple of his sons, full brothers SEAGULL-BAY PLATINUM or DIAMOND or maybe S-S-I SNOWMAN MAYFLOWER.

MARS ALTAFIXMAN
Fibrax x O Man x Sinatra
Proven Sire – Alta Genetics
+911 lbs Milk +0.19 %F +84 lbs. F +0.12 %P +60 lbs P 0.3 PL 3.13 SCS +0.91 PTAT +1986 TPI
+1246 kgs. Milk +0.52F +100 kgs. F +0.36 %P +78 kgs P +104 HL 3.22 SCS +3 Conf. +2918 LPI
With the exception of O Man, most breeders would probably never have heard of many of the sires in AltaFixman’s pedigree. That’s mostly a result of the international genetics marketplace these days, as his sire, Fibrax is from Italy and his dam, FROUKJE 375 is from the Mars herd in The Netherlands. But don’t let this relatively unknown pedigree scare you. It is actually based on generation after generation of strong type and production. Although his overall Milk numbers may seem average, his components are out of this world. At +.19%F +84 lbs of Fat and +.12%P +60lbs of Protein, AltaFixman is certainly a strong component punch whenever you need it. Type wise look for AltaFixman to sire good all around solid cows that could be protected on median suspensory ligament and body depth. As an added bonus, since AltaFixman is such a non North American pedigree, he is certainly an outcross to most North American cattle.

SEAGULL-BAY SUPERSIRE
Robust x Planet x Shottle
Genomic Sire – Select Sires
+2342 lbs Milk +0.08 %F +107 lbs. F +0.02 %P +75 lbs P 5.4 PL 2.80 SCS +2.38 PTAT +2413 TPI
+2586 kgs. Milk +0.25F +122 kgs. F +0.06 %P +91 kgs P +111 HL 2.85 SCS +9 Conf. +3395 LPI
Of course it’s hard to mention any production improvement without including Supersire. This Robust son from AMMON-PEACHEY SHAUNA VG-87-2YR-USA, really is a genomic wonder. Not only does he have the highest genomic values in the breed for production but he also has great functional type and health traits to go with it. Here you have a sire that is 2342 lbs. for milk, with positive component deviations, 2.38 for type, and over +5 for productive life. Supersire daughters and sons are already topping many of the lists. While Supersire daughters will not be winning many shows, his no holes type linear has resulted in his widespread use and so far he has delivered on all expectations.

BUSH-BROS ALTABGOOD
Robust x Massey x Boliver
Genomic Sire – Alta Genetics
+1603 lbs Milk +0.13 %F +93 lbs. F +0.09 %P +71 lbs P 4.5 PL 2.85 SCS +2.41 PTAT +2373 TPI
+858 kgs. Milk +0.41F +113 kgs. F +0.28 %P +89 kgs P +110 HL 2.89 SCS +7 Conf. +3256 LPI
Another Robust son that should certainly get your attention is AltaBgood. While not an international pedigree like AltaFixman, AltaBgood’s pedigree will not spark instant recognition for most breeders. What you do get is generation after generation of genomic performance that is higher than their parent averages. While those wanting pedigree power to go with the genomic test may not want to use AltaBgood, those that have confidence in the genomic system should certainly take a look. Like AltaFixman, AltaBgood will also sire extreme component improvement (+.13%F +93lbs F +.09%P +71 lbs P). He combines these outstanding components with a strong type linear and average health traits. AltaBgood will need to be protected for high pins and dairy strength.

Longevity Improvement

While some would try to tell you that high type equals longevity, that is not necessarily the case. When it comes to longevity, it’s hard to argue with actual performance indices like Herd Life and Productive Life. In order to give a more balanced approach to longevity, we looked at both and came up with the following top sires:

COYNE-FARMS DORCY
Bolton x Bret x Rudolph
Proven Sire – ABS Global
+1603 lbs Milk -0.04 %F +46 lbs. F -0.01 %P +46 lbs P 4.9 PL 2.70 SCS +3.00 PTAT +2267 TPI
+1721 kgs. Milk -0.16F +48 kgs. F -0.02 %P +53 kgs P +114 HL 2.67 SCS +13 Conf. +2971 LPI
Another popular genomic sire that has become a mainstay on the proven sire lists is Dorcy. DORCY offers breeders a little different pedigree with no O Man, Planet, Goldwyn or Shottle in it. The impressive combination of type and production from his cow family and daughters are readily evident in DORCY’s proof with +1603M +46F +46P +623NM 2.70SCS +4.90PL and +3.00T +3.22UDC +3.07FLC. He has good ratings for all functional traits except for calving ease. Breeders interested in a Bolton son from an outcross pedigree, top notch udders, very good feet & legs and functional traits may consider Dorcy. Dairy Strength and Rump are only slightly above breed norms. Look for Dorcy to sire balanced dairy cattle that have great udders and very good feet & legs, though he will need to be protected for fat percent and dairy strength, specifically his body depth and chest width.

Health and Fertility Improvement

With the constant improvement in the accuracy of health and fertility index calculations, more and more breeders are confidently including Health and Fertility traits in their breeding requirements.

DE-SU OBSERVER
Planet x O Man x BW Marshall
Proven Sire – Select Sires
+1416 lbs Milk +0.00 %F +43 lbs. F -0.01 %P +49 lbs P 5.9 PL 2.84 SCS +2.64 PTAT +2186 TPI
+1973 kgs. Milk -0.05 F +68 kgs. F +0.02 %P +66 kgs P +111 HL 2.83 SCS +12 Conf. +3072 LPI
Carrying the flag and riding the wave of the health and fertility trend is De-Su Observer. This sire has been the poster child for high health and fertility since his early genomic numbers came back and catapulted him into international use. With his daughter performance validating his early numbers, Observer has to be one of the quickest sires in history to get to 99% Reliability. His daughters stamp out a pretty consistent pattern with strong production and solid type. Type wise he has actually performed pretty well, with daughters exhibiting outstanding udders (watch out for short teats) and solid feet and legs. One area you will also want to protect him on is his dairy strength, as his daughters are certainly not deep and could stand to have more chest width.

ZANI BOLTON MASCALESE
Bolton x O Man x Adam
Proven Sire – Semenzoo
+1562 lbs Milk +0.02 %F +53 lbs. F +0.01 %P +59 lbs P -0.3 PL 2.75 SCS +2.79 PTAT +2072 TPI
+2084 kgs. Milk -0.05 F +73 kgs. F +0.07 %P +75 kgs P +104 HL 2.76 SCS +14 Conf. +3091 LPI
With such a push on health traits over the past few years, it’s actually almost impossible to find an outcross sire on the top lists. If you are one of the few that didn’t go heavy on Mascalese as a genomic sire, you certainly can take advantage of that now by using him or one of his many sons. Possessing greater conformation than his sire stack would indicate, MASACLESE sires strong dairy cattle that are durable and possess good health traits. For those looking for a more outcross sire that is high for health and fertility, try Erdman mentioned above.

CO-OP UPD HUNTER SALVINO
Hunter x Massey x Ally
Genomic Sire – Cooperative Resources International (CRI)
+1265 lbs Milk +0.21 %F +101 lbs. F +0.08 %P +61 lbs P +3.9 PL 2.81 SCS +2.46 PTAT +2401 TPI
+1474 kgs. Milk +0.51 F +107 kgs. F +0.22 %P +72 kgs P +112 HL 2.78 SCS +12 Conf. +3353 LPI
If you’re looking for something a little different and an outcross pedigree, try Salvino. Another product of the Genesis program at CRI, Salvino is a 2nd generation product of this program. His dam’s sire, Massey, was one of the early success stories of this program. Look for Salvino to sire strong component improvement with a solid type linear. In a market place flooded with many of the same bloodlines, finding a sire that is a little different and yet still able to deliver top progeny can be a challenge. Salvino may be your best option for a relative outcross sire that still can compete with the other top genomic sires.

The Bullvine Bottom Line

We have stated it many times. In maximizing your genetic gain, you can’t just pick from the top of the TPI or LPI list. You need to make sure that your matings are the best corrective cross. Breeding great cattle is part art and part science. You need to have both parts. It takes careful consideration and generation after generation of corrective mating to breed great cow families. That is why, instead of just giving you a list of the top 12, we have tried to provide you with insight into which sires will provide you with the maximum gain in each specific area.

A long time ago in a galaxy far away……Who are we kidding the A.I. stud wars are now and the battleground is the USA, the most lucrative genetics market in the world. For years I have heard the debate from all sides about which stud has the best sire line-up. The problem is most of it has been anecdotal and no one has really backed it up with numbers. So, in true Bullvine fashion, we thought we would bring numbers to this galactic battle.

To settle this confrontation, we decided to let genomics and genetic evaluations determine exactly which stud rules the empire. Specifically we looked at top 50 proven and genomic sires for TPITM, NM$ and PTAT to determine who are the studs and who are the duds. The following is what we found. (Please note we deemed a sire to be available if the had an NAAB Code)

TPI

Click on image for enlargement

It’s interesting to see how the percentages seem to be similar to market share, prior to the genomic era. The big five being ABS, Select Sires, Alta Genetics, Accelerated Genetics and Genex.

Click on image for enlargement

The top gPA TPI sires tell a very different story than that of the proven sires. Studs like ABS Global and Alta Genetics do not have as large a portion of the top bulls whereas Semex and Select Sires have invested heavily in obtaining top gPA TPI sires.

Click on image for enlargement

When it comes to strength of line-up from a TPI perspective, it’s interesting to see how Semex and some of the smaller studs have made a big push on getting the top genomic sires, in order to have that stronger line-up in the future. On the other hand, some of the established studs are resting on their proven laurels. (Please note for top list we used the top 50 genomic and top 50 proven sires.)

NM$

Click on image for enlargement

It is interesting how the studs that are more milk producer focused as opposed to breeder focused rise up on this list. Specifically Genex, Alta Genetics and ABS have their best showings here.

Click on image for enlargement

Even the studs who have not gone heavily into genomics, are at least sampling some high genomic sires for NM$. When it comes to selling volumes of semen, nothing compares to a high NM$ sire. Yes the top TPI sires will sell well, but the high NM$ will move in volume as they attractive the commercial market.

Click on image for enlargement

The greatest spread of the top sires amongst the studs occurs in NM$. This is not surprising since this is such a lucrative market for so many studs. They all are trying to get the top sires.

PTAT

Click on image for enlargement

When it comes to the top type bulls, it seems like everyone wants a shot at them. Type sires are a premium market delivering high margins to the units. This is certainly one area where type oriented countries and their respective studs excel (Example, Semenzoo and Semex).

Click on image for enlargement

Similar to the proven bull list, this is an area where everyone wants to play. It is interesting to see that many of the type niche studs don’t have more on these lists. That could be due to the fact that they are focusing on show type and not necessarily on sires who have high genomic tests for PTAT.

Click on image for enlargement

A subject of great debate on our Facebook page has been who has the better type sire lineup, Select Sires or Semex. If you go by the numbers, there is no question that Select Sires has the advantage. Looking deeper into this, we decided to take the top 5 proven and the top 5 genomic sires from each stud and see whose were better. Select Sires averaged 4.14 PTAT and Semex averaged 3.72. So Select not only has an advantage in numbers but also in quality.

The Bullvine Bottom Line

Click on image for enlargement

Click on image for enlargement

Click on image for enlargement

It’s always interesting when you get into the debate about which studs have the best sire lineup to see the perceptions people have. Most look at it based on what their breeding goals are and state their opinion relative to that. Nevertheless there are many that are guilty of looking at things through rose colored glasses for the studs they prefer and hence discrediting other studs because of it. The one thing you cannot deny is that, when you look across the board, the US sire line up at Select Sires has the largest market share and are a player in each major market. Studs like Semex (type) and ABS, Alta Genetics, and Genex (NM$ and TPI) do well in niche segments.

As we research topics here at The Bullvine there is always an undercurrent of expectation. You never know the “when” or “where” of the next big surprise. Most often it is the “who” that makes our days special. As we began the background work on a series we have planned on robotic milking, we lined up several interviews (Read more – Robotic Milking: More than just automation it’s a new style of herd management). It became obvious that the go-to expert in this area would be Francisco Rodriguez, DVM, Holstein Breeder, Dairy Management Advisor Automatic Milking for DeLaval North America. Not only did we get tremendous insight from his experience in this new and growing field but, once again, we met a passionate cow man who is following a dream.

Five Farming Generations in Colombia

Francisco is the 5th generation of farmers in Colombia. His grandfather was a dairyman, cattleman and one of the pioneers in the genetic development of the Paso Fino horse. Francisco, like others in his family, inherited that love for raising livestock. He recounts how his own interest was ignited. “Our dairy was relatively small and my Dad needed a simultaneous job to keep up with his new family. Then he joined Semex Colombia as a sales representative, I remember going to the farm since the beginning of my life, but I got in love of Dairy cows when every month a catalogue or a magazine from Canada or USA arrived home. Instead of reading about superman or batman I started reading about Starbuck, Aerostar, Raider, Laurie Sheik, etc. etc. I developed a true love for cows and genetics becoming the foundation of my life together with my passion for business, as my mother has had clothing stores her entire life, allowing me to get the entrepreneur spirit at a very young age.

Single Minded Student

Because of his passion for dairy cows and horses, Francisco decided to go to Vet School after graduating from High School. He had tremendous academic success and was the best student in the faculty for four years in succession. After graduation, Francisco’s internship continued in the USA. “When I finished my Vet School I started an internship in one of the largest and most progressive western dairies in the USA. I learned from the management of an operation milking thousands of cows.”

Vet-Businessman in Colombia

After one year gaining experience, Francisco made the decision to move back to Colombia. His career now became more business focused as he adapted to the opportunities arising there. “When I arrived in Colombia two very interesting things happened. My Dad Francisco Rodriguez and my genetics mentor Juan Pablo Muriel started a partnership and became the exclusive Select Sires Dealership in Colombia!!” This was exciting explains Francisco because of the opportunity it gave him to understand both the genetics industry from both the Canadian and the US perspective. A new opportunity soon presented itself. “At the same time DeLaval hired me as a Sales Manager for The Andean and Caribbean countries, working with farmers from 1 – 30,000 milking cows, from Water Buffalo to High yielding Holsteins, and traveling all over the world learning the different dimensions in milk production. “

More Diversity. More Studies. Big Vision.

By now, it was clear that Francisco like generations before him could comfortably handle several different challenges at the same time. He clarifies. “Simultaneously with my work at DeLaval I continued developing my business skills graduating from Business School as a Strategic Marketing Management Specialist. I am a passionate individual, a dreamer, and I’ve been developing my life under friendship, excellence, focus and education, always starting small but thinking big, with a wide vision.

Achieving the Dream

It isn`t surprising that someone whose family, studies and passion all revolve around cows would want to own them as well. Sure enough he confirms, “Since I was a kid I had a dream of my own registered Holstein herd, I liked my Dad’s commercial cows but that was not enough for me, I wanted purebreds, I wanted to become a real breeder.” With that end in mind he worked very hard to make it become reality. He outlines what it took. “Simultaneously with my position at DeLaval, in 2007 my parents and I founded Colganados RV.” Colganados is a dairy business based on added value strategies, particularly genetics. Francisco explains how they carried out this philosophy. “Colganados started with 15 cows, 30 heifers and 25 embryos selected from the best cow families available in the Colombian Market, most of them coming from well known Canadian and American Blood lines. Today Colganados RV milks approximately 200 registered Holsteins and develops one of the most aggressive Holstein breeding programs in Latin America.”

Open to A New Opportunity

For many, this would have marked the high point in a fast-rising career. For Francisco – dairyman- veterinarian- breeder- businessman it was just the beginning. In 2010 DeLaval offered to relocate Francisco to Madison, WI as the Dairy Management Advisor – Automatic Milking for North America. In describing what this felt like, he says, “I compare it to a pilot being asked to race in Formula 1.” Joking aside he admits that it was a tough decision to make. “I had a life built in Colombia and at the same time I had a unique opportunity in the heart of the dairy industry. My parents and employees gave me the strength and then I accepted the challenge and moved to Madison in 2011.”

Francisco Rodriguez and his wife Sofia Cordabo

Love and Marriage

2011 marked special changes in Francisco’s life. He sums it up, “I got married to a wonderful woman, met wonderful people, made new friends and of course that put in the best place to continue reaching my dreams and accomplishing goals as a professional and as a breeder.”

Seen here are (l-r) Juan David Rodriguez, Francisco Rodriguez and his wife Sofia Cordabo with KHW Regiment Apple A1-Red-ETN.

Enter Robotic Milking

An interesting facet of Francisco’s career opportunity would be that he would be working with Robotic Milking and high end technology. This has been tremendously positive he reports. “It has exposed me to the most progressive farmers and advisors around the world, especially in the North American Market. On average I visit two robotic herds every day, it is amazing to evaluate the quantity of miles and farms we see in a year!!!”

Building on a Firm Family Foundation

Even more amazing than the miles Francisco travels, are the achievements he makes on several fronts simultaneously. “In the beginning of 2012 I was missing having my own herd so together with my wife we started looking for the next level. For us that would mean being a dairy breeder in the North American Market with a global Scope.” Never one to dream big without doing his homework Francisco tells what they did next, all the while making it sound easy. “After visiting some of the most influential herds in the USA and Canada we met the foundation of our new project KHW Regiment Apple A1 RED-ETN a clone of the R & W world champion 2011 and million dollar APPLE.” This purchase is a fascinating story on its own. Another day perhaps.

KHW REGIMENT APPLE 1-RED

The Bullvine Bottom Line

And so a passionate cattle man continues on several fronts to build his dream. In April 2012 Colganados began its history as a member of the USA Holstein Association. There have been many dimensions to the journey so far but Francisco recognizes that the diversity is what keeps him passionate “At the end of the day, the combination of all different kinds of knowledge, experiences and daily life bring a unique vision for every person.” Exactly!

Lately, there has been a great deal of discussion regarding March 2013 when dairy breeders will be able to genomically test their own bulls. (Read – How Genomics Is Killing the Dairy Industry) One thing for sure is that it is forcing many Artificial Insemination companies to re-think their corporate strategy.

Probably one of the greatest areas for executives at the AI companies to look at for examples on how to position their companies is the retail industry. There are many similarities between A.I. and retail, especially considering the need for product differentiation as well as being a service organization. Three great retail examples to look at are Wal-Mart, Apple, and Amazon.

Wal-Mart

If you look at the large artificial insemination companies, you can already see that many of them are heading toward the Wal-Mart model, where they try to offer the highest quality product at “always low prices.” Companies like Alta Genetics, ABS Global, Accelerated, and CRI have identified the largest portion of the marketplace, the commercial producer. This is where they can sell the highest volume semen and maximize profit not through the semen prices they charge but rather through how efficiently they can operate.

Similar to the Wal-Mart, one stop shopping model, many of these A.I. organizations now try to be a complete solution to their customers offering such services as, herd health, feed & nutrition in addition to their genetic and reproductive services.

When it comes to their genetic offerings, the key here is that they are selling shelf space. No longer is it as much about the product they are selling, as it is about the complete package they are trying to offer to the commercial breeder. That means that they are looking to provide a consistent product rather than seeking to have the #1 TPI or LPI sire. Therefore, they do not have to go out and source the top sires but, rather, they need to provide consistent reliable genetics that can help advance their commercial partner herds. This means they will not have to get as aggressive on their lease deals and can still focus on their efficiencies and volumes as opposed to the ultra-aggressive sourcing of top gPA TPI and gPA LPI sires.

Once the world’s most dominating retail entity, there is no question that the Wal-Mart model works, Although it was once believed that only one company could survive and thrive in the ultra-competitive big box store world. The recent performance of companies like Target does hold out some hope for the many A.I. companies looking to battle for this large market segment.

Apple

In contrast to the Wal-Mart model is Apple. The most admired company in the world has built its market position through developing, marketing and direct selling their own unique product to what most would consider a niche market. They key part to this model is having a very clear vision who your marketplace is and developing an extremely differentiated product in the eyes of their customers. A.I. companies that seem to be emulating this model are GenerVations with their work with the Lylehaven Lila Z and Wabash-Way Evett families, JetStream Genetics with their work with Regancrest S Chassity, and Select Sires through their Aggressive Reproductive Technologies (ART) program, though to a much larger audience that the first two (Read – Select Sires vs Semex: A contrast in Cooperatives).

Similar to how Apple has received widespread criticism for some of their own business practices, companies like Select Sires have received criticism for owning females (Read –Should A.I. Companies Own Females ). Though as the Apple model demonstrates you need to have a distinctive product in order to survive. The biggest thing that all three of these companies have learned is that, in order to compete in this ultra-competitive marketplace, they need to cost effectively source their genetics. That means producing their own sires and accelerating their rate of genetic advancement so that they can have a product that is unique in the marketplace. (Read – The Genomic Advancement Rate – The Battle for Genetic Supremacy)

There are two main lessons I think many of these A.I. companies can learn. First always be innovative and at the front of the marketplace. If you are not pushing the front end of product development/sire sampling, you will fall behind your competitors and get lost in no man’s land. The second lesson is that you have to control the license to your product. Apple has never allowed other companies to come in and license their product. They also did not create the iPhone or iPad and then the next day let their competitors take their products and designs and create their own versions knock off versions. Companies that did allow this to happen, like Microsoft, have developed much larger market share, but have fallen on financial challenges. For A.I. companies that means you need to control your young sire sampling so that you have the next generation of genetics before your competitors do. While some would say that is not fair, in order for these companies to compete they have no option but to do so. While having negative sentiment in a small segment of the marketplace is not ideal, the risk of not having a differentiated product is a much bigger gamble.

Amazon.com

More recently, I have seen the emergence of online semen retailers akin to the amazon.com model. Companies like DairyBullsOnline in North America and Dairy Daughters in the UK, are able to compete not on their size and scale, or their own distinctive product (though DairyBullsOnline does have a strong segment in the polled and red and white market) but rather through their efficiencies. These companies do not have large facilities with great numbers of staff, but rather they are extremely efficient in their operations and source their product direct from breeders or smaller A.I. organizations. Leveraging technology both on the web as well as for shipping semen internationally these companies are able to operate at much higher efficiency, passing benefits back to the producers and the breeders they source their genetics from. Despite what they lack in market share, they are able to attract unique genetics through offering seed stock breeders a much higher royalty percentage.

The interesting part about this model is that Amazon was able to stay competitive and fight off many competitors by developing private labels and exclusive marketing arrangements, including being the online e-tailer for many large retail companies. As many of the organizations are forced to get more efficient will they be able to reduce costs and develop their own platforms that will take away the advantage these companies have? You can already see it in the retail world with traditional companies like Wal-Mart and Best Buy committing significant resources to their web properties.

The Bullvine Bottom Line

The artificial insemination world is changing very rapidly. While many companies have already identified what part of the market segment they are going to try to occupy, others seem to be taking a sit and wait approach. The problem is, if they have not already identified whether they are going to be a Wal-Mart, Apple, or Amazon, it is too late, as many of the other companies already have a significant head start.

While many would think that all farmer-owned cooperatives would have the same challenges and the same mandates, there could no greater contrast than the approaches taken by Select Sires and Semex. Select Sires is a federation of nine farmer-owned-and-controlled cooperative and Semex is a partnership of three breeder owned cooperatives. So structurally they are quite similar with perhaps some significant differences in mandates. However these two artificial insemination companies are headed in very different directions when it comes to approaches to communications and product development.

The Art of Sire Sampling

GLEN-TOCTIN BOLT LUCILLE VG-87 one of the dams selected for the ART program and dam of S-S-I DOMAIN LITHIUM

There no question that how an AI company defines its genetic mission, contracts young sires and proves bulls will greatly affect the profitability of the company. In 2009, the Select Sires board saw the writing on the wall with genomics, the new tool on the scene. The Board directed management to find new and better ways of procuring additional high-ranking, uniquely bred genetics in the most cost effect manner possible. This lead to the development of Aggressive Reproductive Technologies (ARTTM), a program that involves the ownership of a small group of elite females (Read – Should A.I. Companies Own Females). The females were purchased with plans to purposely breed them to create new and unique genetics for Select Sires, a product that would help differentiate them in the marketplace.

While Select insist that “the bulls resulting from the ART program compliment, not replace, bull calves that we continue to purchase from seed-stock producers” explains Jeff Ziegler, Genomics Program Manager at Select Sires. Semex, on the other hand, have made it very clear that they have “no interest in owning females” and decided that they would stick to what they know best, sire sampling, and let the breeders specialize in breeding the cattle. That may be a great brand position with their traditional seed-stock breeders, but if they cannot procure and prove they have the top genetics, it will mean nothing and prove to be a very costly mistake.

The Golden Rule – He Who Has The Bulls Has The Power

S-S-I DOMAIN LITHIUM

So how has this been working out? Seventeen of the top new 200 new release females for October are members of the ART program at Select Sires (Read – Top 200 New Release Females for October). In fact, this is a growing trend with 10/200 in September and 8/200 in July. There are also early genomic young sires making their mark, including MOUNTFIELD SSI DCY MOGUL (purchased as an embryo) who is already being used as a sire of sons. Two recent success stories from the female ownership side of ART are S-S-I BOOKEM MORGAN and S-S-I LITHIUM. Both are top 10 bulls on Holstein USA’s August active genomic young sires for GTPI at +2495 and +2470,respectively.

However, Select Sires ability to perform at an A+ level does not just come from the ART program. In recent August 2012 sire summary, Select Sires leads the industry with 36 sires on Holstein USA’s Top 100 Total Performance Index™ (TPI™) list with at least 97 percent reliability for milk and type. In addition, Select Sires is home to 10 sires over +3.00 for PTAT including the new #1 Type sire, MAPLE-DOWNS-I G W ATWOOD EX-90. They own the No. 1 TPI sire above 97% reliability for milk and type, Ensenada Taboo Planet EX-90-GM. The future is also looking bright with 24 of the top 50 GTPI active genomic young sires coming from the Select Sires Super SamplerTM lineup.

So how has Semex policy of partnering with top breeders instead of owning females being working for them? According to our analysis of the August 2012 New Release sires in Canada, a few of Semex’s partner herds have not been delivering the product. Two key Semex partner herds Stanton’s and Claynook saw nine sires proven with an average drop of 418 LPI points when compared to the GPA LPI’s. Those same two herds have seen an average drop of 635 points on over 40 bulls since the introduction of genomics back in August 2009 (Read – The Hot House Effect on Sire Sampling).

In fact, Select Sires owns the #1 LPI sire, Ensenada Taboo Planet EX-90-GM. Even in the market where Semex dominates in the number of young sires sampled it only have five out of the top 10 GPA LPI young sires from the August 2012 release. Remember they sample over 70% of the sires in Canada. and they only has three of the top 30 GPA TPI sires. By comparison GenerVations, which has been very active in the ownership of females, has four of the top 30 GPA LPI sires and they sample a small fraction of the sires that Semex does.

No Longer a Dictatorship –It Is Now A Two Way Conversation

In today’s business world, if you don’t have a better product, you had better do a great job of marketing your product. For years, Semex has been able to market and sell based on the ‘Canadian Kind’. However, genomic evaluations has pretty much all but removed any customer loyalty and regional advantages that may have existed for AI companies in the past. Breeding programs have been adjusted by most major AI companies so they can deliver product that will satisfy breeders individual breeding strategies. AI companies, the world over, have had to redefine their business model over the past few years and rebranding has had to be addressed. Recent print ads and website changes would suggest that without the top of the list product to sell Semex has started to rebrand itself.

Yet, as the world becomes more social, information, access to it and the ways the product will generate more customer profit as driving forces in today’s dairy cattle breeding world. It is no longer about control it is about accurate and new information. It’s about open two-way discussion. No longer can you dictate what people are to think, but rather you need to engage them in open honest conversations.

The Bullvine Bottom Line

The marketing place is evolving, those companies that evolve and adjust will survive and thrive, those that don’t will fizzle out. I am not saying that Semex needs to run out and buy females, nor am I a saying that Select Sires is doing everything correctly. However, there are some significant differences in how these two companies procure and market their genetic products. These differences are leading the two companies in very different directions.

The recent announcement by Canadian Dairy Network, Holstein Canada, Pfizer Animal Health, The Semex Alliance and its owner partners to support delivery of genetic services to the Canadian dairy industry got me thinking about what the future holds for the dairy breeding industry. This alliance has me drawing parallels to what has occurred in the corn industry and the effects that had on consumers as well as producers.

While the announcement just covers the identification of genetic markers that has already revolutionized the dairy breeding industry, the part that catches my attention is a company the size of Pfizer entering into the marketplace. When Monsanto entered into the corn breeding industry, it not only became a competitor to the other established players but it also used its vast resources to take the process to a completely new level. While Monsanto had been a market leader for many years in the sale of herbicides this research gave them the ability to apply their expertise on the genetic level.

With Pfizer entering the genomics game, does that mean that we will start to see them offer their own genetics available for sale that have been bred or rather modified to be disease resistant or even worse modified to produce more milk, or have better feet and legs. If you thought the manipulation of photos to make cattle look better was an issue (read more here Has Photo Enhancement Gone Too Far), what happens when they can do it on the genomic level? While the practical side of me sees how having cattle that are more disease resistant, that is polled and milk 20,000 kgs, for 10+ lacations would be beneficial, the breeder in me has concerns. Part of what makes animal breeding great is the fact that it’s an art form. What happens when that art form is handed over to science?

One thing that you will know for sure is that the sale of animal genetics will become a commoditized market place dominated by the big players such as Pfizer, Monsanto, and other multinational conglomerates. While there is no question that these conglomerates will dominate over the average breeder, they will also dominate over the current major A.I. companies. It has me asking myself “Is this move by Semex a step in building a partnership because they see the future coming?” If so good on them for at least being proactive and at least trying to sustain their long-term viability.

If it’s more by chance, as I think it is, I think the whole industry needs to look at what the future holds and maybe have a wakeup call to where this is all heading. Animal breeding is becoming big business, as evidenced by companies like Select Sires that have expanded their breeding programs to include owning females (read more about this at Should A.I. Companies Own Females?). As the ability to deliver predictable results at a lower cost of development continues, larger and larger companies will enter the marketplace and begin to dominate the current players.

In the past, dairy cattle breeding has benefited from great moves, such as happened when T.B. Macauley, an insurance executive, started Montvic, when J. Rockafeller Prentice, from oil and banking fame, started A.B.S. and, likewise, when Peter Heffering, using outside industry investors, collected great cows and started Hanover Hill Holsteins.

There is also the consumer side to this equation. We all witnessed consumer reaction to the use of rBST. Over time while there has remained a small portion of the marketplace that actively buys non-rBST milk. However, for the most part the issue has died off. In the same way, the GMO corn issue has died off and much of the general public is not even aware that it exists. Thus, there may be uproar as this “new technology” enters the marketplace, however, in time, the result will be the same for this commoditized product. As long as the cost to consumer is lower, they will buy it.

The Bullvine Bottom Line

On the one hand, Thanks to genomics, the future of the animal breeding industry has never look brighter. On the other hand, it also may be facing its greatest risk. Genomics has taken animal breeding from an art form to a science. Furthermore, science will continue to define and refine the process. With companies like Pfizer entering the marketplace this process will be accelerated at a completely new pace. Those players that have the most resources available will also dominate it. This means that the average breeder, as well as the current A.I. companies, need to realistically consider what the future holds as this happens.

So my question to you is, are you ready for GMC (Genetically Modified Cattle)?